Chelsea Handler Confirms Sex Tape, Calls It an 'Audition Joke'

Yesterday afternoon, around the time Chelsea Handler was helping Jay Leno celebrate his 60th birthday on the Tonight Show stage in Burbank, a nasty rumor circulated the blogosphere about a bizarre XXX tape starring the Chelsea Lately host. And while the mythical tape went unmentioned during Leno's birthday celebration, the E! comedienne did address the tape on her show last night.

RadarOnline.com first reported that the video, made over a decade ago, begins with Handler introducing herself fully-clothed. Next, the comedienne delivers a stand-up routine, which is interrupted by footage of Handler engaged in an explicit sex act with a partner speaking in a British accent.

Last night on Chelsea Lately, the comedienne confirmed that the video does exist:

"I would like to say to RadarOnline.com, thanks for ruining my surprise Christmas gift to my staff, and number two, it was made as a joke. I put it on an audition tape for a comedy club, because I'm a comedienne, and I've been showing it at birthday parties for f*cking years!"